Jewett-Cameron Reports Strong Second Quarter Results with EPS Up 50% from the Pr

Jewett-Cameron Trading Company Ltd. (Nasdaq: JCTCF; TSX: JCT) today reported financial results for the second quarter and six months ended February 29, 2008.

Sales for the second quarter of 2008 totaled $15.1 million compared to sales of $16.4 million for the second quarter of 2007. The company reported net income of $513 thousand or $.21 per diluted share compared to net income of $321 thousand or $.14 per diluted share in the same period a year ago. EPS was up 50% vs. the year ago period.

For the six months ended February 29, 2008 Jewett-Cameron reported sales of $29.3 million compared to $31.9 million for the same period a year ago. Net income for the six months of fiscal 2008 was $887 thousand or $.37 per diluted share compared to net income of $609 thousand or $.26 per diluted share in the prior fiscal year. However, the year ago period included an inventory reserve reversal that increased pre-tax income by $150,000. If this item is excluded, then earnings per diluted share in that period would have been $.22, and the current year reflects a 68% increase over that level of EPS in the prior year.

The sales decline in the quarter and the six month periods reflects a decrease in sales in our industrial wood segment that was only partially offset by sales increases in our other business segments. However, income was up significantly based primarily on margin improvement and operating expense reduction in the industrial wood segment coupled with a large increase in sales of specialty metal products in our lawn, garden and pet segment. These metal products have a higher gross margin than our other sales.

Outlook

We continue to believe that the current fiscal year can be a record year in terms of earnings. Results in the third and fourth quarters should be significantly better than the first two quarters of the current fiscal year based on very positive order trends for our specialty metal products coupled with a normal seasonal pickup in activity in our lawn, garden and pet segment.

CEO Comment

"We are very pleased with our results so far this year," said Don Boone, CEO of Jewett-Cameron. "We are particularly encouraged with the continued rapid growth in demand for our specialty metal products, which include our gate support systems, perimeter fencing, and dog kennels. Also, our financial condition is as strong as it has ever been."

Stock Split

At Jewett-Cameron's annual meeting, which was held on March 9, 2007, shareholders approved a three for two stock split, which was distributed on or about March 23, 2007 to holders of record on March 19, 2007. The stock started trading on a post-split basis on March 15, 2007, and per share financial results have been restated to reflect this stock split.